Financial Risk Management Of Group Company

The risk management is one of the most important modern business management functions, which has become one of the key aspects of enterprise success and failure. The core of the enterprise risk management is the financial risk management, whose key point is to balance the relationship between the risk incomes and the risk loses, to manage and control the possible financial risk in advance, and to safeguard the enterprise's sustainable development accordingly. Group companies are playing an increasingly important role in our national economy, which has a vital impact on the social stability and the economical development. However, no enough attention has been paid to the risk management within group companies, especially the financial risk management. Therefore, it is of greatly theoretical and realistic significance to make some research on the group corporate financial risk management.Besides the shared characteristics of the general corporate financial risk management, the group corporate financial risk management is characterized by its uniqueness. Based on the risk management theory, the financial control theory, the game theory and delegation theory, the group corporate financial risk management is a three-layer secondary risk management system which consists of the theory, the method, the tool of the financial risk identification, the financial risk assessment and the financial risk control from three different layers, that is, the group company, the branch company and the business unit. Its aim is to realize the coordinated-and-integrated effect of the group risk management resources.The foundation to realize the coordinated-and-integrated effect is to establish the financial risk integration management. The group corporate finance risk integration management, orientated towards the whole group development strategy and the financial management objective, puts the integrated thought creatively into the financial risk management practice and uses different management methods and information technology techniques which integrate the risk management concept, the financial risk management objective, the financial risk management process and the risk management organization into one whole so as to realize the whole, dynamic and comprehensive financial risk management.